Blog

Wednesday, April 18, 2018

Today Is The Last Day For You To File Your 2018 Tax Return

The IRS website malfunctioned yesterday causing issues for millions of tax filers across the nation. The estimated 5 million taxpayers who waited to file their income tax returns until yesterday were met with a system failure that advised filer to “come back on Dec. 31 9999.” Today is the last day for you to file your 2018 tax return.


April 18th, 2018 is Tax Day 2018



Today Is The Last Day For You To File Your 2018 Tax Return

The system malfunction began early on Tuesday, April 17 and was not resolved until the evening. The malfunction crippled a crucial part of the website that allows taxpayers to file income tax returns and pay taxes online.


When Is The Last Day To File Taxes 2018?

Last night the IRS officially announced it would extend the deadline for filing your income tax return and extensions. Due to system issues, individuals and businesses with a filing or payment deadline on Tuesday, April 17th, 2018 now have until midnight tonight.




“This is the busiest tax day of the year, and the IRS apologizes for the inconvenience this system issue caused for taxpayers,” said Acting IRS Commissioner David Kautter. “The IRS appreciates everyone’s patience during this period. The extra time will help taxpayers affected by this situation.”

How to Get a Tax Extension?

The IRS has also advised taxpayers needing additional time to file income tax extension 2018 for an automatic six-month extension.

You can file an income tax extension for 2018 quickly and easily with our sister product, ExpressExtension. Our step-by-step filing process is equipped with built-in audits to ensure error-free filing of your Form 4868. When you file your income tax extension for 2018 online, you will have until October 15 to file your Federal Income Tax Return.



Apply For Tax Extension Form 4868




Read More »

Monday, April 16, 2018

What is The Penalty For Filing a Tax Return Late?

Busy man realizes that the deadline to file his income tax return is tomorrow and he is staring down hefty IRS penalitesOne of the most dreaded days of the calendar year for many Americans is here! That’s right, the deadline for filing your income tax return is tomorrow April 17th, 2018. If you are not ready to file your federal tax return here is a quick guide to the potential tax penalties you might face. You may be asking yourself, what is the penalty for filing a tax return late?

What is The Penalty For Filing a Tax Return Late?

If you owe taxes and do not file a tax return or file for an extension by tomorrow's deadline you will incur various penalties and interest. However, penalties generally don’t apply when you are expecting a tax refund and fail to file a tax return.

The penalties for failing to file a tax return or tax extension are much higher than failing to pay taxes owed. 

Penalties For Late Tax Payment


Trying to file from the penalty for filing a tax return late might be the best ideaAt the mention of IRS penalties, you might choose the bury-your-head-in-the-sand option this tax season. However, the penalties and interest for not filing a return or tax extension are notably worse than failing to pay taxes owed.

If you fail to pay at least 90 percent of the full amount owed on time, you will be charged a late payment penalty of .5 percent for each month the tax remains unpaid. This will continue until the tax amount is paid in full or the penalty reaches the maximum 25% penalty.

The .5 percent rate will increase to one percent ten days after the IRS issues the notice of intent to levy.

Penalties For Late Tax Filing

If you fail to file your tax return or tax extension you will be charged 5 percent of the taxes owed each month your return is late. This amount will be capped at 25% after five months of incompliance. The minimum penalty amount for filing your return late is the smaller of $100 or 100 percent of your owed tax amount.


I Need More Time to File My Tax Return?

It is understandable that you have a lot on your plate and meeting this deadline is difficult. If you are unable to file your federal income tax return by tomorrow's deadline you must file an income tax extension.


What is IRS Extension Form 4868?

IRS Form 4868 is the 1040 extension formally titled the Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. If you need to file tax extension Form 4868, you will need to e-file by midnight tomorrow. If you file by the tax extension deadline, you will receive an additional six months to file your tax return without incurring IRS penalties.


Where Can I File My Tax Extension Online?

You can file tax extension Form 4868 quickly and easily with our sister product ExpressExtension. Their step-by-step interview-style process is equipped with built-in audits to ensure error-free filing. When you file your tax extension online, you will receive a confirmation email within 48 hours notifying you that your IRS extension was accepted.


Avoid Penalties By Filing a Tax Extension



Read More »

Thursday, April 12, 2018

What You Need To Know About Filing An Income Tax Extension?

If you are not able to complete your federal tax return by the April 17th deadline, you will need to file for an IRS extension. Here is what you need to know about filing an income tax extension.

What You Need To Know About Filing An Income Tax Extension?


Personal Income Tax Overview

April 15th is the personal income tax deadline unless it falls on a holiday or a weekend like 2018. This year your personal income tax deadline is April 17th.

If you have trouble meeting this deadline, you can apply for an automatic extension of time to file using Form 4868. The IRS will grant this extension regardless of your reasons for needing to file.

So if this year's deadline snuck up on you, it is ok! This tax extension will give you an extra six months to file your federal income tax return.


How To File For An Income Tax Extension?


Step 1: Calculate Estimated Taxes Owed
You will need to estimate the amount of taxes you owe for the previous year. You can do this by simply subtracting the total tax amount withheld from your paycheck and your estimated tax payment from the tax amount you owe to the IRS.

Before you estimate your liability amount be sure to reduce your income by all applicable exemptions and deductions.

Use the 2017 tax tables to estimate the amount you owe on your tax return. If you do not pay the full amount you may owe interest and penalties. 


Step 2: Create Your ExpressExtension Account
You will need to create a free account with our sister product and click “Create Personal Tax Extension” from your account Dashboard. At this point, you can pay your income taxes.

The application for your automatic income tax extension of time required very minimal information. However, we will guide you through step-by-step to ensure your information is filed correctly. 


You will need the following income tax information:
  • Name
  • Address
  • Social Security Number


Step 3: Submit Income Tax Extension to The IRS
Once you have completed and reviewed your Form 4868, you can then submit directly to the IRS. When the IRS accepts your form, you will be notified immediately via email.

Please keep in mind that while Form 4868 does provide you with an extension of time to file you are still required to pay 100 percent of your owed taxes. The deadline for submitting your personal income taxes is April 17th, 2018.


Do You Want More Time to File Your Federal Income Taxes?

Are you struggling with a busy schedule?

Need more time to file your file IRS tax return? 

Don't file in a rush and make mistakes trying to meet the April 17th deadline. Join our webinar and learn how you can receive up to an additional 6-months to file your personal tax return.



Read More »

Monday, April 9, 2018

How Do I File A Tax Extension Out-Of-The-Country?

If you are unable to file your federal income taxes by April 17th, don’t worry about Uncle Sam tracking you down. Well, as long as you file an income tax extension Form 4868. But, how do you file a tax extension out-of-the-country?


How Do I File A Tax Extension Out-Of-The-Country?

While you can still file for an automatic extension of time while outside of the United States there are a few things you need to know. Here we will cover what IRS Form 4868 is and how to file it while in another country.


What is Tax Extension Form 4868?

Tax Extension Form 4868 provides you with an automatic extension of time to file your U.S. Individual Tax Return. If you submit your application to the IRS by April 17th, 2018 you can receive an extra six months to file your income tax return without incurring any penalties.
 
Anyone can qualify for an automatic federal income tax extension. The government will not ask why you are in need of additional time to file. If you are unable to file your income taxes by the April 17th deadline, you will need to file tax extension Form 4868.


IRS Form 4868 can extend the filing deadline for the following returns:
Form 1040, Form 1040A, Form 1040EZ, Form 1040NR, Form 1040NR-EZ, Form 1040-PR or Form 1040-SS.

Please note that the federal income tax extension Form 4868 will not extend your deadline for paying any owed taxes. If you are unable to make your tax payment, you will be fined penalties and interest. However, if you are receiving money from the government, you will not be charged. Because the penalty amount is calculated from your owed taxes.

 

Out-Of-The-Country vs. Domestic Filers

Domestic filers within the United States must submit Form 4868 by the April 17th tax deadline to receive a six-month extension. While taxpayers outside of the U.S. and Puerto Rico must submit Form 4868 by June 15th, 2018 to receive a 4-month extension.

But, no matter if you are filing within the U.S. or not you are still required to make your tax payments by the respective deadline.


Am I Considered Out-Of-The-Country?

The IRS, for tax purposes, considers you out-of-the-country if:

  • You live and work outside of the United States and Puerto Rico 
  • You are in military or naval service on duty outside of the United States and Puerto Rico

If you qualify as being out-of-the-country, you will still be eligible for the extension if you are physically present in the United States or Puerto Rico on April 17th.


How Do I Apply For A Federal Income Tax Extension?

You can e-file Form 4868 with our sister product ExpressExtension whether you are filing domestically or abroad. We can easily transmit your forms directly to the IRS so you can rest easy knowing you have an additional six months to file your federal income taxes. File today and receive an automatic 6-month extension of time to file your personal tax return.


Once you have filed Form 4868 with the IRS, you will get a confirmation email within 48 hours notifying you that your extension was accepted by the IRS.



File Your Federal Income Tax Extension Today!





Read More »

Friday, April 6, 2018

What You Need To Know About The 94x Series

business owner discussing the first quarter and filing their 93 x series forms
The first quarter filing deadline for Form 941 is Monday, April 30th! Today we will look at the different variations of Form 941, the Employer's Federal Quarterly Tax Return. Your quarterly tax form will depend on your business’s location and payment schedule.

What You Need To Know About The 94x Series


Understanding the 94x Series

Form 941, the Employer’s Quarterly Federal Tax Return, is used to report employment taxes for wage-paying employers. As an employer, you are responsible for withholding Social Security tax, federal income tax, and Medicare tax from each employee’s wage or salary. You will also use Form 941 to calculate your portion of Social Security and Medicare tax.

The traditional 941 Form is used to report employment taxes within the United States, So what about US territories and alike?

Form 941-SS and 941-PR

Form 941-SS is the US Territories Employer’s Quarterly Federal Tax Return. Wage-paying employers in Guam, the Commonwealth of the Northern Mariana Islands, American Samoa and the US Virgin Islands must file. Same as the traditional Form 941 this form must be submitted by all businesses with employees in US territories quarterly. The only US Territory that will not file the Federal Form 941-SS is Puerto Rico, which has a separate report.


Form 941-PR is the Puerto Rican Employer’s Quarterly Federal Tax Return must be filed by business owners and operators paying wages or salaries. It follows the same deadline as the traditional Quarterly Report. SO those needing to file this form will also need to e-file Form 941-PR and 941-SS by Monday, April 30th, 2018.

Form 94x PIN

Business owners happy about their first quarter 2018 earnings and preparing to file their 94x series form
The 94x PIN is an Online Signature provided by the IRS to authorized personnel within a business. It gives owners and human resources professionals authority to e-sign any forms in the 94x series. If you do not possess a PIN for this quarter, it is not required. However, you will need to complete and e-sign Form 8453-EMP when filing 94x Series Forms.

If you choose to e-file using our sister product, TaxBandits, you will not only have the option to filing using Form 8453-EMP along with your 941 Form, but you can quickly apply for your Form 94x PIN for FREE! Having this PIN for future filing will simplify your federal tax filing experience.

Simplified E-Filing With Experience and Confidence

TaxBandits is an IRS-authorized integrated solution for generating and transmitting your IRS Forms directly with the IRS. If you need to e-file any 94x Series Forms, they will provide you with a step-by-step interview-style process with built-in audits to ensure error-free filing. If you have any questions while filing, they offer phone, live chat, and email bilingual support for your convenience from our US-based Rock Hill, SC location.



File Your 94x Series Forms




Read More »

Monday, April 2, 2018

Today is the Last Day to File Your ACA Forms

Human resources panicked because they forgot about the 1094 and 1095 form e-filing deadline today

Need More Time to E-File Your Employee’s 1094 and 1095 Form?

Today is the last day to file your Affordable Care Act Forms with the IRS. All Applicable Large Employers and Third Party Administrators must e-file their ACA information returns with the IRS by midnight tonight to remain compliant and escape penalties.


Today is the Last Day to File Your ACA Forms

While ACAwise is a full-service ACA filing solution we can only do so much and with the time left. We cannot guarantee that your information will be processed in time. If you have yet to start the e-filing process, we recommend you file tax extension Form 8809.

All Applicable Large Employers and Third Party Administrators are still required to file ACA Form 1095 by the ACA filing deadline. If you file after the deadline without an extension, this is what to expect.


Affordable Care Act Penalties 2018
While the American Health Care Act (AHCA) or Trumpcare is yet to pass through the legislature, the 2018 Obamacare penalty is still fully enforced. All Applicable Large Employer and Third Party Administrators are still required to file ACA Form 1095 by the ACA filing deadline.


Failure to File/ Inaccurate Filing
Your business could potentially be penalized $260 - $520 per form if you fail to file a correct information return (1094 or 1095 Form), but this amount cannot exceed $6 million in total.



Human resources professional reaching out to TaxBandits to avoid IRS penalties for 1094 and 1095 Form penalitesFailure to E-file
If your business files 250 or more forms, you are required to e-file. If you paper file you will incur a penalty of $260 per form.


Failure to Meet 95%
If you do not offer coverage to a minimum of 95% of full-time employees, your business will face a fine of $2,260 ($188.33 per month) per full-time employees.


Failure to Offer Coverage
If your business fails to offer affordable health coverage, you will be fined $3,390 ($282.50 per month) per full-time employee.


Where Can I File Tax Extension Form 8809?

Our sister product, ExpressExtension is an IRS-authorized e-file provider of business information returns and extension forms. Their cloud-based software will transmit your Form 8809 safely and securely to the IRS.

Step-by-step instructions help to quickly e-file and transmit the form. Then within a matter of minutes, you will be notified about the status of the IRS approval. Avoid hefty IRS penalties by filing your IRS 2017 Extension Form 8809 today!



E-FIle IRS Extension Form 8809




Read More »

Wednesday, March 28, 2018

Warning! Are You Facing ACA Filing Penalties?

Human resources professional looks at the clock and realizes that he hasn't filed Affordable Care Act Form 1094 and 1095 to the IRS
Affordable Care Act Forms 1094 and 1095 are due April 2, 2018!


Since we have established that the ACA is here to stay (at least for now), the ACA filing penalties are here to stay as well.


So, needless to say, it’s very important that you get those ACA Forms filed on time!


Warning! Are You Facing ACA Filing Penalties?

If you suspect you may be at risk for not filing on time, go ahead and apply for an extra 30 day extension with IRS Form 8809. It shouldn’t take long, so if you want to do that now while you’re thinking about it - we’ll wait!


Okay, now that that’s done, let’s see just what you’re managing to miss out on:


ACA Filing Penalties You Want to Avoid

So what can filing your ACA Forms late end up costing you?


    Business owner trying file ACA Forms by the deadline he really should just file for an extension and avoid any ACA filing penalties
  • Failing to file a correct information return (a 1094 or 1095 Form in this case) with the IRS can incur a penalty of $260 per form, not to exceed $3,193,000 in a calendar year.

  • Failing to provide a correct information return (1095 Form) to the individual for whom the form is reporting information can incur a $260 penalty per form, again not to exceed $3,193,000 per calendar year.

  • You can also incur a $260 per form penalty if you’re required to e-file (like when you have more than 250 Forms per return) but submit paper forms instead.



And if you intentionally disregard to file these forms at all, the IRS can pull out the big guns and increase your per-statement and total penalties for your missing return.


At ACAwise, we’re dedicated to helping you file your ACA Forms correctly and on time so you can avoid any ACA filing penalties! But you’re going to need to hurry up and get started because there’s only so much we can do when time keeps marching on!


File Tax Extension Form 8809





Read More »

Monday, March 26, 2018

How to Build an Attractive PTO Policy

An attractive time off policy is important to new hires and company moral

It should go without saying that building an attractive PTO or leave policy for your business is super important. Paid time off is a benefit that not only attracts new hires, but influences job satisfaction. While company policy is a dry read for anyone, you better believe your new employees will flip straight to the vacation and PTO section of the handbook. To get you started, here is a quick guide on how to build an attractive PTO policy.


How to Build an Attractive PTO Policy

PTO or paid time off is an exciting acronym for anyone in the workforce. This is the time employees are allotted for holidays, vacations, and of course sick days.

To start your policy, you will need to summarize the overarching details and add detailed examples as to the other scenarios that may arise. To help you here are a few ideas as to what to include.


Observed Holidays

List out all the holidays your staff might observe and state whether the office will be open during those days. Are holidays paid? Hopefully, they are, but you should tell your staff explicitly which holiday if any are included.

Earned PTO

Is PTO accrued over time or automatically given? You will need to explain how PTO days are obtained from your company. This will need to be super specific as to help you in the long run.

How Can Employees Request Time-Off?

Outline the process of requesting and booking time off. How much notice needs to be given for vacations? Who approves time-off requests?


Attractive time off and vacation policy is vital to your employees and over all business What Happens to Unused PTO?

Will you allow employees to carry over any unused days into the following year or will your company put a cap on how many days people can earn? If carryovers or caps are not your thing, consider paying your staff for any unused days.

States also have their own policies and requirements for PTO, so it is important to research before rolling out your policy.

Parental Leave

The Family and Medical Leave Act (FMLA) applies to businesses with 50 or more employees and helps your team through this life-altering experience.

If you have a smaller staff, you can still use FMLA guidelines as a template for setting an attractive parental leave policy for your team.

Sick Leave

Trust us when we say the last thing you want is a staff member with the flu at work. This type of leave is used to keep germs and colds to a minimum.



But Wait There's More!

This is just the tip of the iceberg when it comes to an effective and attractive PTO/leave policy. Before venturing too far, be sure to research both federal and state requirements.

Once you check this task off your agenda, you can move on to the million other tasks begging for your attention. Want a head start on your ACA compliance? Sign-up for your free ACAwise demo, today!

ACAwise is an all-in-one ACA reporting software designed to track and monitor your ACA compliance throughout the year. Then when it is time to e-file we will create Form 1095 and 1094 on your behalf! You will then review your forms and we will securely e-file directly with the IRS. We will even mail your recipient copies from our South Carolina based office the next business day.

Schedule Your Free Demo



Read More »

Friday, March 23, 2018

Summer Vacation- How to Manage Your PTO Requests


It is officially spring and summer is right around the corner! After months of winter coldness, your employees are gearing up for their long-awaited vacations. It is not surprising that paid time off (PTO) is a core benefit employees desire when looking for a position.

Summer Vacation- How to Manage Your PTO Requests


It is a fact; if your employees don’t have a chance to recharge, they will mentally check out. And you know from experience what that means for your bottom line. However, that does not make it easier to juggle all of those vacation requests coming your way.

Set a Deadline For Vacation Requests

You need to set a specific cut off day for employees requesting vacation time. This will give you enough time to project employee absences and resolve any future conflicts. Some organizations require all employees to submit vacation requests early in the year and will allow you to plan accordingly.

Communicate PTO Policy

It is never a bad time to remind your employees of your businesses vacation, and PTO requests policy. Of course, this information should have been covered during the orientation process. Alas, most orientation processes can be overwhelming, so a quick refresher is always a good idea.

Make sure your employees understand when requests are due, how much time is allotted, and how date disputes are handled. 

Vacation Request Policy

To not offend your employees you must be consistent and approach same date requests with fairness along with a policy and process for communicating requests. Additionally, this method and system must be well known and understood by your staff before vacation season. 

However, even with all of this preparation, your managers must be brave enough to turn down vacation requests when the date requested disrupts daily business functionality.


Negotiate Peace

Even with clear PTO request policies and the confidence to refuse unreasonable requests you are not out of the woods yet. You will find employees up in arms against each other in personal disputes especially as summer gets closer.

To help encourage camaraderie among your employees, you will want to spend some time working on employee relations and company culture. Team building exercises are a great way to help employees understand each other, especially those who are very different from themselves.


Keep Everyone in The Loop

Avoid PTO request disputes by keeping everyone involved and in the loop. Confusion and misinformation can happen when requests were declined unfairly, or manager disagrees on the approval of another manager. One way to avoid this kind of dispute is by assigning a vacation approver that is first submitted to a manager of the department before receiving final approval.

Tread carefully, because this suggestion can turn ugly rather quickly. If vacation requests are not passed along and immediately addressed they can be misplaced, or worse, causing miserable employers.


Learn More!



Read More »

Monday, March 19, 2018

Employee Terminations: How to Tell Your Team

Employer meeting with his team to example the situation behind employee terminations

Employee terminations are rough no matter the size of your team. But, the difficulties do not stop with the employee leaving. Now you must manage the concerns of your staff in the days to come following the termination. Here is the HR guide to employee terminations: How to tell your team.

 

Employee Terminations: How to Tell Your Team

Whether your staff is taking a sigh of relief or feel they have lost a member of the work-family, there will be a void, rumors, worries, and an increase in workload. So as an HR professional what do you do? Follow these steps to cut down on worries, boost morale, and reinvigorate your employees.


Step 1: Silence is Your Enemy (but don’t blab)

You might feel that remaining quiet about employee terminations might be the best option. But, if you remain silent it will allow rumors and worries to flourish.

It might be uncomfortable but you need to give your team a brief explanation regarding employee terminations. Here is what you need to remember:

  • Choose your words carefully 
  • Be wary of the information employees receive
  • Ease your current staff’s fears
  • Keep an open door policy
  • Set an appropriate mood


After employee terminations employer explain the new tasks at hand Step 2: Explain Current and Future Changes

Aside from the rumor mill, your employee will be concerned about the increased workload. Ultimately your team members will want to know how employee terminations will affect their workload. Plan to answer the following questions.

  • How will employee terminations affect workloads?
  • Who will be taking over the employee’s workload?
  • Will there be a replacement? If so, how soon?
  • In the meantime, what changes can they expect day-to-day?


Step 3: Refresh Your Team on Expectations and Rules

Break out your employee handbook and refresh your team on expectations and rules that apply. This is especially important if employee terminations relate to a specific rule violation. The rules need to be clearly laid out in the handbook, and your staff should have easy access to a copy.


Moving Forward

After employee terminations, it can be challenging to get your team back in the swing of things. From dividing up the workload to figuring out exactly what went wrong, there are a lot of things you and your employees must face when someone leaves. But, honesty and communication is the best policy for a smooth transition.

ACAwise is an all-in-one ACA reporting software designed to track and monitor your ACA compliance throughout the year. So if there are staff changes like employee terminations, you can quickly update your information so there are no mistakes come tax time.


Schedule Your Free Demo



Read More »

Friday, March 16, 2018

The IRS Has Released New W-4 Forms and Withholding Calculator

HR professional reviewing new W-4 Forms and Withholding Calculator

Following the passage of President Trump’s Tax Cuts and Jobs Act, the IRS has finally released the much anticipated new W-4 Forms and withholding calculator. However, please note that the new withholding change will not affect any 2017 tax returns. Here is what you will need to know about the IRS updates and policy changes.


The IRS Has Released New W-4 Forms and Withholding Calculator


This is excellent information to share with your staff but is also a great reminder for you as HR specialists. 

New IRS 2018 Wage and Tax Guide



Minimum Wage

Minimum Wage
$7.25
Minimum Cash Wage (Tipped Employee)
$2.13
Maximum Tip Credit
$5.12
Youth Minimum Wage
$4.25

FICA (Medicare)

Maximum Taxable Earnings
No Limit
Employee/ Employer Tax Rate  (Unchanged from 2017)
1.45%
Additional Medicare Tax Withholdings on Wages >$200,000 (No Employer Match)
0.9%


FICA (Social Security Tax)

Maximum Taxable Earnings
$128,400
Employee/Employer Tax Rate
2.3%


FUTA (Employer-Paid)

Maximum Taxable Earnings
$7,000
Percent of Taxable Wages
6.0%
Maximum Credit
5.4%
Normal Net Tax
0.6%

Supplemental Wage/ Bonus Rates

Flat Rate Withholding Method
25%
Pay Over $1 Million
39.6%

Health Savings Accounts

Self-Only Contribution Limit
$3,450
Family Contribution Limit
$6,900
Catch-Up Contribution Limit
$1,000

Retirement Plans

Contribution Limit
$18,500
Catch-up Contribution Limit
$6,000


State Payroll Tax

South Carolina Tax Guide

State Income Tax

Wage Withholding
Tables
Supplemental Wage/ Bonus Rate
7.0%

Unemployment Insurance

Maximum 2018 Taxable Earnings
$14,000
Employee Deduction
None
Employer 2018 Tax Rate
0.06 - 5.46%
Standard 2018 New Employer Rate
1.09%
Voluntary Contribution Permitted
No

Disability Insurance

Employee Deduction
None


What is Form W-4?

All of your employees are required to complete Form W-4 as part of their onboarding and new hire process. IRS Form W-4 is used to determine the correct amount of federal income tax that must be withheld from their pay.

It is a good idea to have your employees complete a new form each year, especially when their financial or personal situations change. It is also important that all of the information is correct because if the right amount is not withheld the employee may owe the IRS back taxes.


What The New Form W-4 Means For Employees?

HR professional reviewing changes to W-4 forms and withholding calculator
The Tax Cuts and Jobs Act made several sweeping changes regarding both personal and dependent exemptions and enhancements to the child tax credit. These changes will go into effect next year during the 2018 tax season.

The following groups should check their withholding status and provide updates:
  • Two-income families.
  • People with two or more jobs at the same time or who only work for part of the year.
  • People with children who claim credits such as the Child Tax Credit.
  • People who itemized deductions in 2017.
  • People with high incomes and more complex tax returns.

Other complicated financial situations should also revise their current W-4. Click here to review Form W-4 changes.

More Changes to Come?


We can all expect more updates and changes in legislation in the upcoming year according to the IRS. Our team at ACAwise is closely following all news and information released. Share this post and comment below with any question you may have about ACAwise or the IRS updates.



Read More »

Monday, March 12, 2018

What Important Employee Records Should You Be Keeping?

HR professional updating employee records

The importance of well-kept employee records stretches far beyond the possible legal ramifications. Accurate employee records can help HR departments identify skill gaps and recruit ideal staff members. So what important employee records should you be keeping? If you are looking to improve your department and ease the fear of inspection, it is important to start with your employee records.


What Important Employee Records Should You Be Keeping?

When it comes to employee paperwork, preparation and protection is the name of the game. Here are the different types of forms and information you should keep on former and current employees.


Basic Employee Record Information

Let’s start with the basics. The federal government required you to maintain the following information, and you will thank yourself when it is time to tackle performance reviews.

  • Name
  • Address
  • Job Title (Duties)
  • Dates Employed
  • Wage/Salary

The law requires you to keep this information on records for one year following an employee's termination. However, it is important to review your state and local laws as they can differ from federal requirements.

HR Tip: Keep employment-related information separate from any medical information and internal notes as they are considered confidential.


Hiring and Performance Employee Records

If anyone questions a hiring decision you will need to prove no discriminate was apart of the decision making process. To protect yourself keep the following items on record:

  • Job Posting Information
  • List of Candidates
    • Resume
    • Interview Notes
    • Written Reason for Selection

We recommend you keep these records for one year following the hiring process.

It is also a good idea to keep all performance review, promotion, and any other job-related notes and information. In the case, a former employee brings up a lawsuit for wrongful termination any records on file will be very useful in supporting your argument.


Payroll and Benefits Employee Records

The Age Discrimination in Employment Act (ADEA) and the Fair Labor Standards Act (FLSA) required businesses to maintain accurate payroll documents for a minimum of four years. Keep a copy of employee pay stubs on record following each pay period.

Employee benefits information such as employee retirement, life insurance, COBRA, health insurance and long-and-short term disability plans for a minim of six years. Family and Medical Leave Act (FMLA) requires businesses to retain relevant information for three years.


HR professional relaxing after reviewing all employee records on fileTax Employee Records

The following documents should be kept in the employee's record for a minimum of four years:

  • W-2
  • W-4
  • 1099
  • Form I-9
  • FICA (Social Security and Medicare) and FUTA (unemployment) taxes
  • Federal and state payroll tax deposit forms
  • Federal and state payroll tax forms, including Forms 941 and 940


Simplify The Life of HR

When handling highly sensitive data and information remember that accuracy and organization is the best policy. Even simple mistakes can land you, and your business, in hot water quickly. One aspect of remaining compliant is your ACA reporting and tracking.

If you are looking for full-service ACA reporting software for tracking and monitoring your compliance you have come to the right place. ACAwise is your one-stop destination for all of your year-round ACA needs. Contact one of our representatives for a free demo to learn how we can simplify your business's compliance.



Stay Legally Complaint



Read More »